Ohio Introduces Law to Legalize iGaming

Features of the Bill

Ohio Republican Senator Nathan Manning introduced SB 197, a bill that would legalize and regulate online gambling.

Online slots, poker, table games, horse racing, and the lottery would become available to state residents through licensed sites if passed.

The document includes considerations for issuing licenses for Ohio's four casinos: Jack Cleveland, Hollywood Columbus, Hard Rock Cincinnati, and Hollywood Toledo, as well as seven video lottery establishments. Online companies seeking to operate in the state must establish partnerships with the brick-and-mortar locations.

Each license would cost $50 million, and renewal every five years would cost an additional $5 million.

In addition, platform owners will have to transfer between 36% and 40% of gross revenue to the state. Most taxes (99%) will go to the state's general fund, while 1% will fund anti-gambling programs.

Party support

The bill received support from other Republicans, including Senate President Rob McColley, House Speaker Matt Huffman, and some Democrats. Politicians agree that online gambling could generate significant revenue without raising taxes.

Democratic Leader Nickie Antonio commented that the additional funds could be directed to programs currently experiencing deficits, such as health care and education.

Gaming Operators' Reaction

The reaction from gaming industry representatives was mixed. Large operators such as MGM Resorts, Boyd Gaming, and Penn Entertainment supported the initiative, stating that online gambling was the right direction.

Supporters of the bill argue that legalization would help combat illegal gambling sites and bring in significant tax revenue. Research shows the state could gain between $500 and $650 million annually.

However, Jack Entertainment, owner of Jack Cleveland and Jack Thistledown, opposes iGaming. The company fears it will lead to a decrease in patronage at its facilities.

Churchill Downs (a shareholder in the Miami Valley Gaming racetrack) also opposed the bill, citing potential losses to the international industry following the potential legalization of online gambling.

Prospects

SB 197 is preparing for its initial review by the Senate Gaming Committee. A similar initiative was rejected by the Senate last year. However, on that occasion, Senator Antani (the bill's author) was finishing his term.

The proposal to legalize online poker in Ohio reflects the state's desire to modernize its gaming industry and increase tax revenue. However, given the multiple objections, the future of SB 197 is uncertain.

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